New report on impacts of fiscal policy on poverty and redistribution in Kenya
Poverty and distributional impacts of fiscal policy in Kenya: A Commitment to Equity assessment with extensions to gender and children is published by the Kenya National Bureau of Statistics in collaboration with the Kenya Institute for Public Policy Research and Analysis (KIPPRA), the World Bank, the United Nations Children’s Fund (UNICEF), and ACEIR.
The insights from the report are timely and invaluable for policymakers and development partners, writes Kenya’s Cabinet Secretary for the National Treasury & Economic Planning, John Mbadi, in the foreword:
“Sound fiscal policy is one of the most powerful instruments to translate growth into broad-based improvements in living standards. Economic progress over the past two decades has brought about significant gains; yet, persistent poverty, widening inequality, evolving demographic challenges, and increased fiscal pressures call for the need for bold, evidence-driven policy choices.
The social contract demands that public investments not only fuel growth, but also tangibly improve the welfare of all Kenyans, especially the most vulnerable.”
The report assesses how taxes and public spending in Kenya are redistributing income, reducing poverty, and addressing disparities across regions, gender, and children.
The ACEIR team at the Department of Economics and Development Studies, University of Nairobi, who contributed to the report are Prof. Damiano K. Manda, Prof. Martine Oleche, and Dr Reuben Mutegi, as well as Ahmed Abdiaziz and Rose Apunda.
The study uses the Commitment to Equity (CEQ) framework developed by the CEQ Institute at Tulane University, New Orleans, USA. It is the latest in ongoing fiscal incidence analyses, such as ACEIR’s earlier CEQ analyses for Ghana, Kenya, and South Africa.
The publication was launched on 16 December at a high-profile event in the Kenyan capital where Mbadi delivered the keynote address. It was released alongside KIPPRA’s Kenya Economic Report 2025.
Photo (from left to right): Prof. Martin Oleche, ACEIR Kenya and Head: Department of Economics and Development studies, University of Nairobi; Dr Eldah Onsomu, Executive Director: KIPPRA; Dr Qimiao Fan, Division Director: World Bank; Prof. Paul Wachana, Board Chairperson: KIPPRA; Hon. CPA John Mbadi Ng'ongo EGH, Cabinet Secretary: National Treasury and Economic Planning; Dr Bonface Makokha, Principal Secretary, State Department for Economic Planning; Dr Macdonald Obudho, Director General: KNBS; Mr Benjamin Meyer, Deputy Country Representative: UNICEF Kenya. Credit: Supplied by ACEIR Kenya.
